Hey Bruce, I think that the best way to think of recurring guaranteed payments such as SS is to apply a muliplication factor to them and add them in to the bond area. For example with SS you could take the annual payments received and multiply by 20 to arrive at a lump sum. The reason I chose 20 is that you have a steadily increasing amount as time goes on. You would probably want to use a smaller number if the payment amount is fixed to better account for inflation eating into future value. Any multiplier is an estimate, but I believe a value has to be added for these types of payments and many,many people don't. This will leave them with a portfolio which in most cases is too conservative. JK
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